Construction by the Tennessee Valley Authority (TVA) began in 1955 and was completed in 1957.

The dam's reservoir (Chilhowee Lake) covers approximately 1,734 acres (702 ha) at normal full pool and has a drainage area of 1,977 square miles (5,120 km2).

Chilhowee's powerhouse is equipped with three Kaplan turbines that have a combined generating capacity of 48 megawatts.

Fontana Dam is the primary flow control facility for the lower Little Tennessee River.

[3] When the lake is drawn down for maintenance, the remains of the original bridge of US 129 over Abrams Creek can be seen.